Question
On March 26, Sinker Industries received a special order request for 120 ten-foot aluminum fishing boats. Operating on a fiscal year ending May 31, the
On March 26, Sinker Industries received a special order request for 120 ten-foot aluminum fishing boats. Operating on a fiscal year ending May 31, the company already has orders that will allow it to produce at budget levels for the period. However, extra capacity exists to produce the 120 additional boats. The terms of the special order call for a selling price of $675 per boat, and the customer will pay all shipping costs. No sales personnel were involved in soliciting the order. The ten-foot fishing boat has the following cost estimates: direct materials, aluminum, two 4
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